Upheld: Account administration errors complaint against Esure Services Limited

Decision detail

Summary

Mr T complained that Esure Services Limited failed to update the Motor Insurance Database (MID) after he changed his car on two separate occasions in March and June 2024. This failure resulted in Mr T being pulled over by police on three occasions, causing him distress, humiliation and embarrassment, with his parents present on some occasions and his brother also being stopped whilst using the car. Esure initially offered £250 compensation, later increased to £350, but Mr T considered this insufficient. The FOS investigator upheld the complaint and recommended an additional £200 compensation (total £550), which Esure accepted but Mr T appealed. The ombudsman upheld the complaint and confirmed that £550 total compensation was fair and reasonable given the considerable distress and inconvenience caused over several months.

The Ombudsman's reasoning

The ombudsman found it undisputed that MID was not updated on both occasions when Mr T changed his car. Since insurance on a car is a legal requirement and cars not on MID are likely to be stopped by police, the failure caused significant distress, humiliation and embarrassment to Mr T across multiple police stops. The ombudsman considered the considerable inconvenience, time spent contacting Esure over several months, and additional distress caused by the impact on Mr T's relationship with his brother. The ombudsman determined that £550 total compensation was fair and reasonable in the circumstances, in line with FOS website guidelines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website